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State Bank of India (SBI) has decided to cut the interest rate on savings bank (SB) deposits up to Rs 1 lakh to 3.25 per cent from 3.50 per cent in the back drop of ample liquidity in the banking system and the bank linked retail and micro, small and medium enterprise loans to the repo rate.
This move by India’s largest bank will prompt other public sector banks to also follow suit.
SBI’s SB deposits above Rs 1 lakh currently carry an interest rate of 3 per cent.
Along with the SB deposit rate cut, SBI has also cut its Retail Term Deposit and Bulk Term Deposit interest rates in the ‘1 year to less than 2 years’ tenor by 10 basis points and 30 basis points respectively to 6.30 per cent and 5.90 per cent, respectively, with effect from October 2019.10.9
In view of the festival season and extending benefit to customers across all segments, SBI has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points across all tenors with effect from October 10. The one year MCLR will come down to 8.05 per cent from 8.15 per cent.
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